like_to_retire wrote:
It's easy.
Box 42 is ROC. Subtract it from your ACB.
Add the re-invested amount from the tables to your cost base. Box 21 has nothing to do with your ACB.
Report your T3 on your income tax forms.
That's it. You won't be taxed twice.
ltr
I would still say that, based on the iShares method of accounting - Box 42 is already equal to (ROC - amount you add to ACB in order to account for reinvested). This is at least how it matches up based on the distribution amounts found in 2009_distributions_breakdown_EN.pdf which I saved on my computer at the time. So if you subtract iShares' Box 42 *and* add the re-invested amount, now you're double counting the reinvested amount.
Just to rehash the numbers I placed upthread, with the correction that I had 186 shares XSB and not 189.
Actually 2009 T3 from Credential is a useful example. The only CG distribution that appears is for 186 shares of iShares XSB on 12/30/2009, in the amount of $13.35 (Box 21). The same distribution contains $50.00 of other income (box 26) and -$7.76 (negative) in Box 42 (amount resulting in cost base adjustment), for a total of $55.60 which is exactly how much cash they gave me on that day.
The Q4 2009 distribution in question appears on their 2009 breakdown as follows:
Cash 0.29893, Reinvested 0.07180, Total 0.37073, Eligible 0, Non-eligible 0, Other 0.26883, CG 0.07180, RoC 0.03010, Foreign 0
The number in Box 42 was -$7.76. If you take (RoC - Reinvested) you get -0.0417 per unit or $-7.76 for 186 shares. If I had adjusted by Box 42 *and* again by the reinvested amount, I definitely would have been double counting the reinvested amount.